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March 21, 2009 – Comments (5)

Naked captalism has a post Ponzimonium

I spent quite a bit of time looking at historical data and you can see the degree that the market became bubbled in line line with Greenpan's policies starting in the 80s. 

He just created financial instability everywhere and the biggest bubble's the world has ever known.  There are more financial structures that have ridden their way up like a ponzi scheme due to grossly incompetent and negligent fiscal policy.

I think ponzimonium might be a new buzz word.

5 Comments – Post Your Own

#1) On March 21, 2009 at 7:22 AM, dwot (40.93) wrote:

Here is a post from two days ago about the rich moving a trillion dollars out of banks.

Learn from the wealthy and make sure you aren't at risk with your bank.  There is not enough reserves to cover the losses.  I truly believe the bailout money is serving as reserves that don't exist and that without it there could quite possibly have been a complete collapse of the financial system. 

If the banks have lost your money through "loaning" it to people who can't repay it how do you get it back? 

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#2) On March 21, 2009 at 7:31 AM, DaretothREdux (36.80) wrote:

If the banks have lost your money through "loaning" it to people who can't repay it how do you get it back? 

Ummm...

You don't?

Good post Dwot.

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#3) On March 21, 2009 at 7:53 AM, abitare (38.89) wrote:

dwot,

Good find thank you.

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#4) On March 21, 2009 at 1:22 PM, belfairinvestor (29.35) wrote:

 I truly believe the bailout money is serving as reserves that don't exist and that without it there could quite possibly have been a complete collapse of the financial system. 

Whoah! So the TARP was actually created to "fund" the eventual "run on the banks"?

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#5) On March 21, 2009 at 8:22 PM, JGus (28.83) wrote:

Dwot,

Great analysis as usual. I think it would be wise for more people to pull a sizeable amount of cash out of their bank to provide a cushion in case there is some sort of 'banking holiday'.

As far as Greenspan goes, I linked an article from The Big Picture the other day that spoke of his role in creating this mess. Here's the blog with the link The Maestro Has No Clothes

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